Largest Public Bitcoin Mining Companies
The return of the exchange-traded fund (ETFs) Valkyrie Bitcoin Miners (WGMI) shows how much the value of the crypto mining company Has been affected. As of November 11, the fund was trading more than 70% below its launch price in February 2022.
What are the biggest public bitcoin mining companies and how do they weather the storm? Here we take a look at the biggest mining stocks by market capitalisation.
What is bitcoin mining?
Bitcoin mining involves solving mathematical puzzles to process bitcoin transactions block chain and earn rewards. By performing this task, new BTC tokens are created and miners are compensated for their effort, equipment, and electricity bills.
Sophisticated hardware is required to mine bitcoin profitably as the difficulty of the puzzles increases to reduce the speed at which the asset supply expands. The biggest bitcoin mining companies have thousands of devices that solve problems faster than a human can. The total value of the BTC tokens they receive in return is considered the company’s income.
The cost of running large Bitcoin mining companies includes the electricity needed to power the devices, maintenance of expensive mining farm cooling systems, staff, and other operating costs typical of any business.
In 2022, the bitcoin mining sector entered one of its worst bear markets since the digital asset emerged in 2009 as deteriorating macroeconomic conditions across the world pushed the value of BTC to a 20-month low in early November.
Meanwhile, industry-specific developments such as the collapse of the Terra ecosystem and the Celsius network, as well as the FTX Liquidity Crisis hurt the price of BTC, sending shockwaves through the cryptocurrency markets.
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Largest Public Bitcoin Mining Companies
So who are the biggest public bitcoin mining companies? Below is the list of largest miners by market capitalization according to CompaniesMarketCap data as of November 11.
Marathon Digital Holdings (MARA)
Digital Marathon (MARA) is the first stock on the list of Bitcoin mining companies. The company is a former uranium and vanadium exploration company that turned to bitcoin mining after the company merged with Global Bit Ventures in 2017. By the end of 2021, the company would represent 2, 1% of the global bitcoin hash rate.
Marathon has facilities in South Dakota, Nebraska, Montana and Texas. The company aims to power its bitcoin mining facilities with renewable energy sources by the end of fiscal year 2022.
Speak end of 2021, Marathon had reserves of 8,115 BTC, of which 4,794 were held in an investment fund. These holdings were valued at around $346 million at the time, but may be worth much less now as the value of BTC has declined sharply in 2022. During this same period, the company has generated total revenues of $150.46 million, but suffered a loss of $85.09. Mr.
Additionally, Marathon had long-term debt of $728.40 million on total assets of $760.09 million, including $268.52 million in cash and cash equivalents. It seemed to be the most indebted crypto mining company on the list.
Riot Blockchain (RIOT)
Riot Blockchain (RIOT) is another stock on the largest public list of bitcoin mining companies. The company also offers its facilities to other large mining companies so that they can establish their own farms by taking advantage of the company’s proprietary infrastructure.
Riot’s main mining site is in Rockdale, Texas. The company operated 30,907 mining rigs per end of 2021and had 4,884 BTC tokens in reserve which were valued at $159.54 million at the time.
By the end of that year, the company generated $213.24 million in revenue, most of which came from its exclusive mining operation. It also posted a net loss of $7.93 million, had no long-term debt and boasted $312.32 million in cash and cash equivalents.
Canaan (CAN) is a Chinese company that has established a subsidiary in the Cayman Islands to be able to offer its common stock to US-based investors through American Depositary Shares (ADS). The company has been manufacturing crypto mining rigs since 2013 for bitcoin mining companies under the Avalon brand.
So far, the company has developed nine mining rigs, including the first generation of its A1246 units, which was launched in 2020. The miner also produces AI-powered applications.
Speak end of 2021, Canaan had 346 employees, generated revenue of $1.42 billion – most of which came from the sale of its flagship mining rigs – and posted a net loss of $1.02 billion. The company also reported no long-term debt and had cash and cash equivalents of $421.23 million.
Mining Hut 8 (HUT)
Founded in 2017, Hutte 8 (HUT) is one of the oldest bitcoin mining companies in North America. The company is headquartered in British Columbia, Canada, and in addition to its main mining operation, also offers processing services to institutions.
According to his website as of November 11the company had three digital asset data mining facilities, five multi-tier data centers for high-performance computing, more than 400 customers for its advanced computing solutions, and 7,078 BTC tokens in reserve as of May 31, 2022 .
At the end of 2021, Hut 8 generated revenues of $173.77 million and net losses of $72.71 million. In addition, the company had long-term debt of $24.2 million and cash and cash equivalents of $140.13 million.
Cipher mining (CIFR)
Figure (ICFR) is the last in our list of the top five bitcoin mining companies. Cipher is a fast-growing, industrial-scale company with operations in the United States. In February 2022, the company began operating its first facility in the country and planned to activate two to four more sites that could be powered entirely by renewable energy.
Cipher is a pre-revenue company. In Full year 2021, the company recorded net losses of $72.15 million, had no long-term debt, and reported cash and cash equivalents of $209.84 million. The company went public in August 2021 via a merger with a special purpose acquisition company (after-sales service) called Good Works.
In August 2021, it signed deals with Bitmain Technologies and SuperAcme Technologies to acquire 27,000 and 60,000 miners respectively. Some of this equipment should be operational in 2022. However, the company’s latest quarterly reports do not yet show revenues. Cipher’s mining operations will be based in Alborz, Texas, where its first facility was built.
The bottom line
Note that the current list of top bitcoin miners is subject to change as individual stock prices fluctuate. Therefore, this data should not be used as a substitute for your own research. Always perform your own due diligence, studying the fundamentals and techniques in detail, looking at the latest news and a wide range of analyst commentary.
Remember that past performance does not guarantee future returns. And never trade money you can’t afford to lose.
How many bitcoin mining companies are there?
The list provided by CompaniesMarketCap, as of November 11, tracked the value of the 16 largest public bitcoin mining companies. There might be other listed mining companies that are also not on the list because they are too small. Additionally, there are many bitcoin mining companies that are private entities whose shares have not been listed on a stock exchange.
What are the famous bitcoin mining companies?
Should I Invest in Bitcoin Mining Companies?
Whether Bitcoin mining stocks are right for you depends on your risk tolerance, investment goals, and other personal factors. Remember that bitcoin (BTC) is highly volatile, and the companies that mine it are subject to the price fluctuations of the cryptocurrency veteran. Always do your own due diligence before investing. And never invest money you can’t afford to lose.
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